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  • FAAC shares N1.578tr to federal, states, councils for March

    FAAC shares N1.578tr to federal, states, councils for March

    Monthly disbursements to the federal, states and local government areas dropped for the third consecutive time yesterday. The Federation Account Allocation Committee (FAAC) shared N1.58 trillion to the three tiers for March

    The committee announced N2. 411 trillion as the total revenue generated in March at its April meeting in Abuja yesterday.

    The total distributable revenue comprised N931.325 billion from statutory sources, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL) and N28.711 billion from Exchange Difference revenue.

    According to the communiqué issued by FAAC, the gross revenue available for March stood at N2.411 trillion. The deductions for cost of collection stood N85.376 billion, while N747.180 billion went to transfers, interventions and refunds accounted consumed.

    Despite the lower net revenue available for distribution, the March statutory revenue of N1.718 trillion showed an increase of N65.422 billion over the N1.653 trillion received in February.

    However, revenue from Value Added Tax (VAT) dropped to N637.618 billion last month from the February figure of N654.456 billion – a decrease of N16.838 billion.

    From the total distributable sum of N1.578 trillion, the federal government received N528.696 billion; states collectively got N530.448 billion, while the 774 local government areas received N387.002 billion. Additionally, N132.611 billion – representing 13 per cent of mineral revenue – was allocated to oil-producing states as derivation revenue.

    The breakdown of the N931.325 billion statutory revenue shows that the federal government took N422.485 billion, the states got N214.290 billion and N165.209 billion shared to the councils. The oil-producing states received N129.341 billion from this component as derivation revenue.

    Read Also: NEITI puts FAAC disbursements to three-tiers of govt in 2024 at N15.26tr

    From the VAT pool of N593.750 billion, the federal government got N89.063 billion, states got N296.875 billion and the local government areas got N207.813 billion.

    For the EMTL revenue of N24.971 billion, the federal government took N3.746 billion, states received N12.485 billion and local government areas went home with N8.740 billion.

    In the case of Exchange Difference revenue of N28.711 billion, the federal government received N13.402 billion, states N6.798 billion and local government areas was allocated N5.241 billion. A further N3.270 billion from this revenue was distributed as 13 per cent derivation to oil-producing states.

    A deeper look into the revenue trends shows that while Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased significantly during the month under review, several other key sources witnessed declines.

    These include Oil and Gas royalty, EMTL, VAT, Excise Duty, Import Duty, and Common External Tariff (CET) Levies.

  • FAAC shares N1.578tr March revenue to FG, States, LGAs

    FAAC shares N1.578tr March revenue to FG, States, LGAs

    The Federation Account Allocation Committee (FAAC) has disbursed N1.578 trillion to the Federal, State and local governments as revenue generated in March 2025.

    This was confirmed at the April 2025 FAAC meeting in Abuja.

    This is the second consecutive drop in the allocations to the three tiers of government.

    The total distributable revenue comprised N931.325 billion from statutory sources, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL), and N28.711 billion from Exchange Difference revenue.

    According to the official communique after the meeting on Tuesday, gross revenue available for March stood at N2.411 trillion.

    From this, deductions for cost of collection amounted to N85.376 billion, while transfers, interventions, and refunds consumed N747.180 billion.

    Despite the lower net revenue available for distribution, the March statutory revenue of N1.718 trillion showed an increase of N65.422 billion over the N1.653 trillion received in February.

    However, revenue from VAT dropped to N637.618 billion in March from N654.456 billion in February — a decrease of N16.838 billion.

    From the total distributable sum of N1.578 trillion, the federal government received N528.696 billion. State governments collectively received N530.448 billion, while local governments received N387.002 billion. Additionally, N132.611 billion — representing 13 percent of mineral revenue — was allocated to oil-producing states as derivation revenue.

    Read Also: Fed Govt set to disburse over $400m cabotage fund

    Breakdown of the N931.325 billion statutory revenue shows that the federal government took N422.485 billion, the states N214.290 billion, and local councils N165.209 billion. Oil-producing states received N129.341 billion from this component as derivation revenue.

    From the VAT pool of N593.750 billion, the federal government received N89.063 billion. States got N296.875 billion and local governments received N207.813 billion.

    For the EMTL revenue of N24.971 billion, the federal government received N3.746 billion, states N12.485 billion, and local governments N8.740 billion.

    In the case of Exchange Difference revenue of N28.711 billion, the federal government received N13.402 billion, states N6.798 billion, and local governments N5.241 billion. A further N3.270 billion from this revenue was distributed as 13 percent derivation to oil-producing states.

    A deeper look into the revenue trends shows that while Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased significantly during the month under review, several other key sources witnessed declines. These include Oil and Gas Royalty, EMTL, VAT, Excise Duty, Import Duty, and Common External Tariff (CET) Levies.

  • FAAC disburses N1.678tr to FG, States, councils

    FAAC disburses N1.678tr to FG, States, councils

    A total of N1.678 trillion from the Federation Account revenue for February 2025 has been distributed among the Federal Government, State Governments and Local Government Councils. 

    The allocation was made at the March 2025 meeting of the Federation Account Allocation Committee (FAAC) in Abuja presided over by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

    Compared to the N1.703 trillion shared in January 2025, the February disbursement reflects a decline of N25 billion, representing a reduction of approximately 1.47 percent in revenue allocation.

    It was also revealed that an augmentation of N178 billion was distributed among the three tiers of government as follows: the Federal Government received N93.770 billion, State Governments received N47.562 billion, and Local Government Councils received N36.668 billion.

    A communiqué at the end of the meeting stated that the total distributable revenue of N1.678 trillion comprised distributable statutory revenue of N827.633 billion, Value Added Tax (VAT) revenue of N609.430 billion, Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion, and an augmentation of N178 billion.

    The communiqué further revealed that gross revenue available in February 2025 was N2.344 trillion. Deductions for the cost of revenue collection amounted to N89.092 billion, while a total of N577.097 billion was allocated for transfers, interventions, refunds, and savings.

    The gross statutory revenue received in February stood at N1.653 trillion, a decrease of N194.664 billion when compared to the N1.848 trillion recorded in January 2025. Additionally, gross revenue from VAT was N654.456 billion, lower than the N771.886 billion available in January by N117.430 billion.

    Out of the N1.678 trillion total distributable revenue, the Federal Government received N569.656 billion, while State Governments collectively received N562.195 billion. Local Government Councils received N410.559 billion, and N136.042 billion was allocated to oil and mineral-producing states as 13% derivation revenue.

    From the N827.633 billion statutory revenue, the Federal Government received N366.262 billion, State Governments received N185.773 billion, and Local Government Councils received N143.223 billion. Additionally, N132.374 billion from this revenue was shared to eligible states as derivation revenue.

    In terms of VAT, the Federal Government received N91.415 billion from the N609.430 billion VAT pool, with State Governments receiving N304.715 billion, and Local Government Councils N213.301 billion.

    From the N35.171 billion EMTL revenue, the Federal Government received N5.276 billion, State Governments received N17.585 billion, and Local Government Councils received N12.310 billion.

    Solid Minerals revenue of N28.218 billion was also shared, with the Federal Government receiving N12.933 billion, State Governments N6.560 billion, and Local Government Councils N5.057 billion. A total of N3.668 billion from this revenue source was disbursed to eligible states as derivation revenue.

    FAAC noted a significant rise in revenues from Oil and Gas Royalty and Electronic Money Transfer Levy (EMTL) during the month of February. However, there were notable declines in collections from Value Added Tax (VAT), Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty, and CET Levies.

    The meeting was attended by key officials, including the new Accountant General of the Federation, Shamseldeen Ogunjimi, alongside representatives of the states and revenue-generating agencies. 

  • States kick over N200b FAAC remittance shortfall

    States kick over N200b FAAC remittance shortfall

    • Accuse NNPCL of making ‘incomplete’ payments
    • Experts reconciling subsidy outlay ahead next meeting

    The Forum of Commissioners of Finance under the Federation Account Allocation Committee (FAAC) is demanding immediate action from the Nigerian National Petroleum Company Limited (NNPCL) on the remittance of about N200 billion to the federation account.

    The forum says the NNPCL has made only one incomplete remittance of less than N200 billion to the federation account since October 2024.

    Dispute between the states and the organisation is blamed for the inability of FAAC to convene for its monthly meeting last week.

    It is understood that both parties are in touch to resolve the issue.

    Chairman of the Forum, Akin Oyebode, told The Nation that “Subsidy ended in October 2024. Since then, NNPCL has only made one incomplete payment of under N200 billion to the federation.”

    Oyebode said states and local governments need more resources to fulfill their obligations.

    He explained that NNPCL is responsible for three types of payments: royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), taxes to the Federal Inland Revenue Service (FIRS) and dividends to the federation as its shareholder.

    Due to NNPCL’s irregular remittances, a reconciliation of subsidy arrears is underway to determine whether the federation owes NNPCL or vice versa.

    Oyebode stressed that until this reconciliation is concluded and a payment plan is agreed upon, NNPCL should fulfill its financial obligations to the federation.

    Read Also: FAAC disbursements, IGR and Fed govt interventions to states in 2024

    On last week’s stalled meeting of FAAC, Oyebode said talks were ongoing to establish clear terms of engagement with NNPCL.

    “If NNPCL presents a reasonable position, the meeting will hold soon. Commissioners are ready to return to Abuja,” he said.

    Oyebode downplayed any notion of conflict, stressing that both parties were working towards a mutual agreement.

    He described President Bola Tinubu’s subsidy removal policy as a catalyst for these financial discussions, which were previously impossible under the subsidy regime.

    On resolving NNPCL’s inconsistent remittances, Oyebode expressed optimism that the reconciliation would be completed within weeks.

    Once concluded, both parties will agree on a payment plan.

    If it is established that the federation owes NNPCL, it may need to adjust its revenue allocation.

    If, on the other hand, NNPCL owes the federation, it must propose a repayment plan.

    Oyebode is hopeful that the matter would be fully resolved before the end of 2025.

    The Chief Corporate Communications Officer, Mr Olufemi Soneye, who The Nation contacted for a response had not responded to the message sent to him as at press time yesterday.

    He was also yet to return the telephone calls made to him.

    FAAC comprises the minister of finance as chairman, all state commissioners of finance, state accountants-general, the accountant-general of the federation and the permanent secretary of the federal ministry of finance and members meet every month to allocate federally collected revenues.

    The federal government collects 52.68 per cent of the revenue, states 26.72 per cent and the 774 local governments 20.60 per cent.

  • FAAC disburses local govts’ January allocation to states

    FAAC disburses local govts’ January allocation to states

    • Direct transfer to 774 councils fails to take off due to lack of dedicated accounts with CBN

    Statutory monthly allocations will not be directly disbursed to the 774 local governments this month by the Federation Account Allocation Committee (FAAC).

    It is due to their inability to meet the deadline for the submission of account details, it was learnt yesterday.

    The councils’ January funds would be disbursed through the states, a source said.

    However, according to the source, the Universal Basic Education Commission (UBEC) and Primary Health Centre (PHC) would be funded directly from the Federation Account.

    FAAC has released N860.252 billion to the state governments for January, out of which N498.498 billion belongs to them and N361.754 billion to the local governments.

    A FAAC official, who spoke on the condition of anonymity, said the commission transferred the January allocations to state governments because the councils could not meet the administrative requirements for funds disbursement.

    He said: “The January allocation did not go to the local governments but to their state accounts.

    “If they have started submitting their accounts, their February allocations will go to them.

    “The January allocation has been paid to the state accounts already. That means they didn’t submit their details on time.

    “If the councils can move fast and tidy up the loose ends early, they will get their funds directly from next month.

    “That will signal the commencement of their autonomy as desired by the Bola Tinubu administration.’’        

    Another FAAC official said the Office of the Accountant-General of the Federation (OAGF) and other stakeholders were working hard to address the delays in fully complying with the apex court judgment.

    Read Also: FAAC shares N1.727trn November revenue to FG, states, LGs

    He said: ‘’I learnt the process of creating accounts is what is holding the process, but the Federal Government is determined to make sure that local government autonomy becomes a reality. I can assure you that things are moving in the right direction.’’

    To prevent governors from mismanaging council funds, an Inter-Ministerial Committee headed by the Secretary to the Government of the Federation (SGF), Senator George Akume, is developing a framework to enforce the Supreme Court judgment. 

    According to the official, the template will authorise the Accountant-General of the Federation (AGF) to deduct funds meant for primary education, healthcare, and other constitutional responsibilities of local government directly from FAAC allocations and release them to the relevant agencies.

    He said: “They (LGAs) have certain obligations like counterpart funding of Universal Basic Education Commission (UBEC) primary schools, health initiatives, and some other responsibilities where they are supposed to contribute a certain portion.

    “Eventually, what will happen is that some of these funds will likely be deducted at source and transferred to those respective agencies.”

    The OAGF has been collaborating with state governments to assist the LGAs in developing the template aimed at ensuring transparency and accountability in the disbursement and use of council funds.

    Despite the progress being made, the activities of the Akume-led inter-ministerial committee have been slowed down by the ongoing budget defence and other pressing engagements involving key government officials.

    The source, however, said technical members of the committee are meeting over the template.

    Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), had in May last year instituted a case in the Supreme Court seeking full autonomy for local governments.  

    He prayed the court to stop governors from unlawful dissolution of democratically elected council officials.

    Fagbemi accused governors of abuse of power, urging the apex court to give an order expressly stating that the funds of LGAs from the Federation Account should be paid directly to them rather than through the state governments.

    Many of the governors, through their Attorneys-General, contested the suit.

    On July 11, 2024, the Supreme Court granted financial autonomy to the councils, setting a precedent for grassroots governance.

    The ruling aims to curb the undue control over local government funds by governors and ensure transparency and accountability in financial disbursements.

    To implement the judgment, the Federal Government directed all local governments to open dedicated bank accounts with the Central Bank of Nigeria (CBN) for the direct transfer of their monthly allocations.

    The directive was to bypass state governments entirely and place financial resources under the management of local governments.

    Last week, Bello Lawal Yandaki, national president of the Association of Local Governments of Nigeria (ALGON), assured stakeholders that there was no cause for alarm over the failure of the councils to open the accounts.

    He attributed the delay to procedural issues on the part of the LGAs.

    “The CBN is presently awaiting directives from the Federal Government to open local government accounts for the respective states, which can be done within 24 to 48 hours for each,” Yandaki added.

    He said once the accounts are fully operational and the necessary details submitted, the disbursement would proceed without further delay.

  • Direct payment of allocation to councils begins next month

    Direct payment of allocation to councils begins next month

    • All obstacles cleared

    • Lagos to hold election into 20 councils, 37 LCDAs next year

    Barring any last-minute change of plan, councils will begin to get direct allocation from the Federation Account next month.

    It will begin with the disbursement of this month’s allocation to the tiers of government, a source told our correspondent at the weekend.

    The direct receipt from the Federation Account Allocation Committee (FAAC) will end the delay in the implementation of the July 11 judgment of the Supreme Court granting financial autonomy to councils.

    Since the judgment was delivered, the Federal Government has been making an effort to ensure minimal disruption to state/local government operations.

    The umbilical cord of the state/local government joint account into which council allocations are paid has been difficult to break because of subtle resistance by governors, many of who are displeased with the Supreme Court judgment.

    A member of the Inter-Ministerial Committee established to enforce the Supreme Court judgment told our correspondent that approval has been given for the direct FAAC allocations to LGAs from next month after all the issues were laid to rest.

    The source explained that though some councils have been collecting their allocation directly, the process will be fully operational by next month.

    The committee member declined a request to name the councils that have been receiving direct allocations.

    The source said: “A few LGAs have already started receiving their direct allocations but all of the 774 LGAs will fully start receiving their allocations from January 2025.

    “Our committee will reconvene in January to review its progress and finalise measures before the Accountant-General of the Federation issues authorisation for the complete rollout.

    “This is a critical juncture in Nigeria’s governance structure.

    “Our January 2025 meeting will also address the actions of governors attempting to undermine the autonomy of democratically elected LGA chairmen, deputies, and councillors, ensuring they are not coerced into serving state interests.”

    This move is believed to be a critical step in empowering councils to carry out their constitutional responsibilities effectively without undue interference by governors.

    The source expressed disappointment with the suspension for two months of democratically elected local government chairmen and deputies by the Edo State House of Assembly, following a petition by Governor Monday Okpebholo accusing them of insubordination for not making available their financial statements as directed.

    Read Also: Saudi trip yields investments, jobs for Nigerians – Edun

    “It is highly undemocratic for governors to dissolve elected LGAs.

    “Such actions undermine the autonomy granted to local governments and create an environment where LGAs become pawns in the hands of state executives,” the source said.

    The committee, chaired by Secretary to the Government of the Federation (SGF) George Akume has as members Coordinating Minister of the Economy Wale Edun, Attorney-General of the Federation and Minister of Justice Lateef Fagbemi (SAN), Minister of Budget and Economic Planning Abubakar Bagudu, Accountant General of the Federation Oluwatoyin Madein, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, Revenue Mobilisation Allocation and Fiscal Commission Chairman Muhammed Shehu and representatives of state governors as well as local governments.

    President Bola Ahmed Tinubu threw his weight behind the financial independence of councils.

    The inter-ministerial committee endorsed the implementation of constitutional provisions that recognise councils as the third tier of government.

    Fagbemi had threatened to initiate contempt proceedings against defiant governors who failed to comply with the July 11 Supreme Court judgment.

    Justifying councils’ financial autonomy, Fagbemi said: “Local government autonomy is meant to empower the grassroots, not enrich individuals.

    “Any chairman found guilty of diverting funds will face severe legal consequences.” 

    Some states have laws seemingly aimed at bypassing the Supreme Court judgment.

    The Anambra State House of Assembly, for instance, passed a Local Government Administration Bill mandating LGAs to remit a portion of their allocations into a state-controlled joint account.

    Governor Chukwuma Soludo defended the legislation as necessary for transparency and collaboration, but critics, including civil society groups, accused his administration of undermining the spirit and letters of the Supreme Court judgment on financial autonomy for councils.

    On the other hand, the Nasarawa State House of Assembly aligned with the Supreme Court ruling by abolishing joint accounts and restructuring its local government system to ensure compliance.

    Governor Abdullahi Sule signed the bill, thereby signalling support for grassroots financial independence.

    As part of the Supreme Court judgment which mandates councils to be run by democratically elected officials before being qualified to access direct allocation from the Federation Account, all the states have conducted elections which ushered in elected chairmen and councillors.

    The Senate also weighed in, urging full compliance with the Supreme Court judgment.

    It advocated constitutional amendments to remove ambiguities in Section 162(6) of the 1999 Constitution, which created state/local government joint accounts.

    Senate President Godswill Akpabio emphasised the need for a clear framework to enforce local government autonomy effectively.

    Immediate past National President of the Association of Local Governments of Nigeria (ALGON) Aminu Muazu Maifata yesterday advised council chairmen on how to use direct allocations to them.

    ‘’I honestly expect them to work towards improving the lives of the people at the grassroots.

    “I expect them to channel those resources towards implementing laudable programmes and projects as well as tackling challenges at the grassroots,” Maifata said.

    He explained that ALGON already has a template on how council chairmen should judiciously use their FAAC allocations.

    Maifata, a one-time chairman of Lafia LGA of Nasarawa State, also enjoined chairmen to tackle insecurity, water shortage, and infrastructure gaps.

    He explained that these are the basic needs of the rural population.

    The former ALGON boss said: “I don’t expect any chairman to have any difficulty in carrying out their constitutional responsibilities.

    “I can authoritatively give you this assurance, and I honestly expect them to work towards improving the lives of the people at the grassroots.

    “We already set the template when the Supreme Court judgment was delivered and each chairman knows what to do if the resources are available, so I expect them to follow the template we set and deliver good governance to our people at the grassroots.”

    “I also expect them to undertake capacity building of the legislative arm and the executive of various local governments across the country.

    “I expect them to bring skillful resource persons that will speak on issues that will strengthen the local government administration.

    “These are some of the key areas I expect them to start tackling immediately.” 

  • FAAC disbursements, IGR and Fed govt interventions to states in 2024

    FAAC disbursements, IGR and Fed govt interventions to states in 2024

    Since the assumption in the office of President Bola Ahmed Tinubu in May, last year (18 months), the revenues and federal government interventions to the 36 States and the Federal Capital Territory (FCT) have increased by over 90% (almost double) what States were receiving during the administration of President Muhammadu Buhari. This is largely due to the immediate removal of the subsidy on Premium Motor Spirit (PMS or Petrol), whence the money used hitherto used for the payment of the PMS subsidy was shared as part of the Federal Allocation in line with provisions of the 1999 Constitution of the Federal Republic of Nigeria. Consequently, between June last year and to date, the Federal, State, and Local Governments in Nigeria have collectively received about N25 trillion or more as monthly FAAC (Federation Account Allocation Committee) disbursements. The latest disbursement of N1.727 trillion was made last week to the three Tiers of Government, for the month of November 2024. The November distribution is 22.5% higher than N1.41trn shared at the last meeting for the month of October 2024.

    Furthermore. President Bola Tinubu has been approving hundreds of Billions of Naira to the tune of over 500 billion Naira (in cash and commodities) that were disbursed paid so far over the period of the past 18 months -almost every quarter to all the States in Nigeria; as “palliative interventions” to States to cushion the effect of the removal of fuel subsidy on Nigerians. This is in addition to additional interventions that Mr. The President has been providing to States that face or that are facing natural disasters like terrorist attacks, flooding due to the overflow of Lagdo Dam in Cameroon (which occurred last year and this year), the bursting of Alo Dam in Borno State, Bomb, and Fire disasters, etc. The additional support from the federal government is to further alleviate the sufferings of Nigerians, especially the multi-dimensionally poor. This is apart from the N573bn shared with states in August (about 2 months ago) which was the World Bank loan (zero interest) received by states for infrastructural development.

    It is therefore true that the States across Nigeria have been receiving the highest amounts of revenues and interventions in the past 18 months – more than any other administration in the past 25years since the beginning of the 4th Republic.

    Read Also: President Tinubu committed to Nigeria’s growth – aide

     Interestingly, some states are yet to implement the recently approved new minimum wage of N70,000. Indeed, there are State Governors who have stated that they will not be able to pay the newly approved minimum wage, as organized labor unions in those States have initiated Strikes in those States to protest the inability of the States to pay the minimum wage. Many of the State Governors are still complaining about the shortage of funds to sustain the States. 

    Indeed, the increase in the monthly FAAC allocation should reflect on the socioeconomic impacts of States; and should be visible in terms of infrastructure, and the quality of life of citizens. Suffice it to say that we have some outstanding State Governors, who have demonstrated prudence, value innovation, effective utilization of resources and, they are making tangible impacts in their respective States. But by and large, if you take it across the board, I don’t think it would be wrong for me to say that a lot, leaves much to be desired in the overall performance of all the States in Nigeria. For example, let us remember that as part of the aforementioned federal interventions, around July this year (about 4 months ago), Mr. President approved an intervention of over N180 billion, which was been shared across the 36 states as FCT, as follows; N5 billion per state, and then bags of rice and bags of fertilizers. I believe that going forward, in the year 2025, we should expect to see governors stepping up the quality of governance in their States to really deliver tangible evidence of good governance to the citizens across states. We need to see that clearly over and beyond mantras, PowerPoint presentations, and photo shoots.

    In 2025 citizens should also direct their attention to the state governors’ performance, and hold the governors to account to ensure more qualitative governance at the State level, especially given the fact that President Tinubu has achieved the laudable autonomy of local government areas. It is time to stop buying the gimmick of governors who continually point to the Federal Government or Mr. President for all the responsibilities of governance. This is misleading and sometimes mischievous. The scope of responsibility and accountability of Federal, State, and Local Governments are very clear. Hence it is time for citizens to demand good governance and accountability from state governors in line with their scope of responsibilities and accountabilities. In my opinion, the State Governors have been responsible for the overall 45% underperformance of our national economy in the past 25 years since the return of Nigeria to democracy.

    Most state governors claim that the increase in the monthly FAAC disbursements has been negated by the decrease in the value of the Naira. Yes, it’s a good defense, but it shouldn’t be an excuse. When politicians campaign for elections, they promise milk and honey that would be flowing in their states, local governments, or even at the federal level. Some of them even tell citizens that we should give them the job regardless of the challenges promising that they will deliver the mandates. Therefore, elected political leaders know the numbers before they take the mandates; be it at federal, state, or local government levels. So, coming now after taking more allocations and saying that inflation has swallowed the value of the money received, which to some extent is true, should not be an excuse. When you inherit an administration, you inherit the capital and the liabilities. And if we are going to use that excuse, then some people should have no business holding political offices. Because the reason why we are in office is to provide value and to create wealth. So, for example, what if there was no inflation? Or what if, for example, with the inflation and then the revenue did not increase? It is time for our Governors to face the reality and to act accordingly. 

    Moreover, in the case of the Internally Generated Revenues in states, most states are lagging behind and there is the need to upscale the IGRs in those States. A classic example is my state, Kano – the commercial hub of not just Nigeria, Kano should also be the commercial hub of the Sahel region of Africa. Yet strangely for over 5 years, Kano has been lagging behind, hovering around 6th position in terms of IGR in Nigeria for the past 3 years. Hence, Kano needs to step up its IGR drive. Lagos State has been blazing the trail of IGR volume and growth trajectory in Nigeria for a long time. According to the Nigeria Bureau of Statistics (NBS), Lagos is leading all the States in Nigeria having generated N815 billion IGR in 2023, followed by the Federal Capital Territory with N217 billion, and then Rivers State with N195 billion 

    How IGRs are utilized for the betterment of the people is critical. How Governors efficiently and effectively use IGR to complement the FAAC allocations in delivering good governance is also important. How Governors are investing or applying the IGR and the FAAC in trying to build infrastructure, invest in human resource capacity, build their Agriculture value chain, harness the States’ solid mineral capacity to deliver or upscale qualitative governance is what remains to be seen for us to now properly evaluate and say the impacts are good and the utilization is also effective.

     Let me remind some of our State Governors of some critical things that they should do to achieve a sustainable increase in IGR. First of all, it is to block leakages to ensure that the monies collected are actually credited into the accounts of the government and are not siphoned away. The second one is creating means of generating revenue without choking your citizenry or killing them considering the current socio-economic headwinds across the Country. It’s very important to create new ways to generate revenue, not necessarily by inflicting more levies/ hardships on the citizenry; for example, through PPPs, through investments as I mentioned earlier, through synergies and collaborations even amongst the states. Those are some examples of how in the short-mid to long-term the Governors will actually increase their IGR. but more importantly, utilisation and impact are very important to measure the effectiveness of wealth creation, socio-economic development, and sustainability.

    The Fiscal Policy and Tax Reform Bill is also a key game changer that will ensure balance, equity, and ultimately better performance at sub-national levels in Nigeria. The Fiscal Policy and Tax Reform is a wake-up call to States to face the reality that as States, we will eat what we earn or produce. Almost everywhere you stand in Nigeria, you are stepping on wealth in Nigeria i.e. human capital, agriculture value chain, and other solid minerals.

    Essentially, state governors in Nigeria have no excuse to fail.

  • Federation Account netted N3.14tr highest inflow in Nov

    Federation Account netted N3.14tr highest inflow in Nov

    • FAAC allocation jumps significantly

    Nigeria recorded its highest revenue inflow in recent time last month with a total gross revenue of N3.143 trillion.

    The Federation Accounts Allocation Committee (FAAC) attributed the rise in revenue to significant increase in oil and gas royalty and Common External Tariff (CET) levies.

    According to FAAC, the strong performance in oil and gas royalty revenue reflects a rebound in crude oil prices and increased production volumes.

    This comes amid intensified efforts by the Nigerian National Petroleum Company Limited (NNPCL) and relevant agencies to curb crude oil theft and improve revenue collection in the upstream sector.

    Read Also: Clark Urges Tinubu to declare state of emergency on south-south roads

    FAAC added that the rise in CET levies, which apply to imports within the Economic Community of West African States (ECOWAS), showed the improved trade compliance and increased customs enforcement in the region.

    In a communiqué released after its monthly meeting, FAAC noted a considerable drop in some critical revenue components, such as: Excise Duty; Value Added Tax (VAT); Import Duty; Petroleum Profit Tax (PPT); Companies Income Tax (CIT) and Electronic Money Transfer Levy (EMTL).

    A source at the FAAC meeting told The Nation that the decreases were tied to broader economic challenges, including subdued consumer spending, declining import volumes, and lower corporate profitability during the review period.

    The source said: “Decline in Excise Duty and VAT revenues signals waning consumer demand, a development that aligns with current inflationary pressures and weakened purchasing power among Nigerians. Similarly, the drop in Import Duty indicates a possible slowdown in international trade activities, possibly due to foreign exchange constraints and global economic uncertainties.

    “The mixed revenue performance points to the challenges Nigeria faces in diversifying its income base and enhancing tax collection efficiency”.

  • FAAC shares N1.727trn November revenue to FG, states, LGs

    FAAC shares N1.727trn November revenue to FG, states, LGs

    A total of N1.727 trillion, representing the November 2024 Federation Accounts Revenue, was distributed among the Federal, State, and Local Governments during the December meeting of the Federation Accounts Allocation Committee (FAAC) held in Abuja yesterday.

     The distributed revenue comprised N455.354 billion from statutory allocations, N585.700 billion from Value Added Tax (VAT), N15.046 billion from the Electronic Money Transfer Levy (EMTL), and N671.392 billion from Exchange Difference revenue.

    A communiqué issued after the meeting revealed that total gross revenue for November 2024 stood at N3.143 trillion. Out of this amount, N103.307 billion was deducted for the cost of collection, while N1.312 trillion was allocated for transfers, interventions, and refunds.

     The gross statutory revenue for the month amounted to N1.827 trillion, reflecting an increase of N490.339 billion from the N1.336 trillion recorded in October 2024. Meanwhile, gross VAT revenue decreased to N628.972 billion in November, down from N668.291 billion in October, marking a decline of N39.318 billion.

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     From the total distributable revenue of N1.727 trillion, the Federal Government received N581.856 billion, while the State Governments and Local Government Councils received N549.792 billion and N402.553 billion, respectively. An additional N193.291 billion, representing 13% of mineral revenue, was allocated to oil-producing states as derivation revenue.

    Breaking down the N455.354 billion statutory revenue, the Federal Government received N175.690 billion, the State Governments N89.113 billion, and the Local Government Councils N68.702 billion, with N121.849 billion allocated to oil-producing states as derivation revenue. For the N585.700 billion VAT revenue, the Federal Government collected N87.855 billion, the State Governments N292.850 billion, and the Local Government Councils N204.995 billion.

     The communiqué further disclosed that N15.046 billion from the Electronic Money Transfer Levy (EMTL) was distributed among the Federal Government, State Governments, and Local Government Councils, which received N2.257 billion, N7.523 billion, and N5.266 billion, respectively. Additionally, from the N671.392 billion Exchange Difference revenue, the Federal Government received N316.054 billion, the State Governments N160.306 billion, and the Local Government Councils N123.590 billion, while oil-producing states received N71.442 billion as derivation revenue.

    The report noted significant increases in revenue from Oil and Gas Royalty and CET Levies during November 2024. However, declines were observed in several other revenue streams, including Excise Duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, VAT, and EMTL.

  • FAAC shares N1.727trn November revenue to FG, states, LGs

    FAAC shares N1.727trn November revenue to FG, states, LGs

    A total of N1.727 trillion, representing the November 2024 Federation Accounts Revenue, was distributed among the federal, state, and local governments during the December meeting of the Federation Accounts Allocation Committee (FAAC) held in Abuja on Friday.

    The distributed revenue comprised N455.354 billion from statutory allocations, N585.700 billion from Value Added Tax (VAT), N15.046 billion from the Electronic Money Transfer Levy (EMTL), and N671.392 billion from Exchange Difference revenue. 

    A communiqué issued after the meeting revealed that total gross revenue for November 2024 stood at N3.143 trillion. Out of this amount, N103.307 billion was deducted for the cost of collection, while N1.312 trillion was allocated for transfers, interventions, and refunds.

    The gross statutory revenue for the month amounted to N1.827 trillion, reflecting an increase of N490.339 billion from the N1.336 trillion recorded in October 2024. 

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    Meanwhile, gross VAT revenue decreased to N628.972 billion in November, down from N668.291 billion in October, marking a decline of N39.318 billion.

    From the total distributable revenue of N1.727 trillion, the Federal Government received N581.856 billion, while the state governments and local government councils received N549.792 billion and N402.553 billion, respectively. 

    An additional N193.291 billion, representing 13% of mineral revenue, was allocated to oil-producing states as derivation revenue.

    Breaking down the N455.354 billion statutory revenue, the federal government received N175.690 billion, the State Governments N89.113 billion, and the Local Government Councils N68.702 billion, with N121.849 billion allocated to oil-producing states as derivation revenue. 

    For the N585.700 billion VAT revenue, the Federal Government collected N87.855 billion, the State Governments N292.850 billion, and the Local Government Councils N204.995 billion.

    The communiqué further disclosed that N15.046 billion from the Electronic Money Transfer Levy (EMTL) was distributed among the Federal Government, State Governments, and Local Government Councils, which received N2.257 billion, N7.523 billion, and N5.266 billion, respectively.

    Additionally, from the N671.392 billion Exchange Difference revenue, the federal government received N316.054 billion, the State Governments N160.306 billion, and the Local Government Councils N123.590 billion, while oil-producing states received N71.442 billion as derivation revenue.

    The report noted significant increases in revenue from Oil and Gas Royalty and CET Levies during November 2024.

    However, declines were observed in several other revenue streams, including Excise Duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Import Duty, VAT, and EMTL.